While welcoming the RBI’s second successive cut in monetary policy rates this year, Brotin Banerjee, Managing Director & CEO, Tata Housing Development Company, said in a statement that banks and NBFCs took cue from the central bank last time around and immediately lowered their lending, and even deposit rates.
“Although, lenders might not take further cue this time, the thing to consider is that the rate cut, coupled with the proposed additional Rs.1 lakh tax rebate for first home loan borrowers (up to Rs.25 lakh), is likely to act as a stimulus for the demand for affordable housing in India.’’
The reduction of 25 basis points is a small but significant gesture for all industries and service sector companies that are faced with a decidedly slow growth period, according to Sanjay Dutt, Executive Managing Director, South Asia, Cushman & Wakefield, a real estate consultancy. “This measure supports the Government’s initiatives to boost overall economic growth without causing any major economic imbalances,’’ Mr. Dutt said in a statement.
However, developers’ body, Confederation of Real Estate Developers’ Associations of India (CREDAI) felt the RBI had missed another opportunity.
“It is high time that we looked at enhancing growth by infusing liquidity and going in for a rate cut,” said Lalit Kumar Jain, National President of CREDAI.
He felt RBI should take steps to ease funding for real estate at much lower rates of interest ``in the interest of millions of home seekers and ease cash reserve ratio (CRR) as well.”
